Bausch + Lomb Corporation (BLCO) AI Stock Analysis

• Market Cap: $6.53B
• Dividend Yield: N/A
• Average Volume (3M): 405.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: 6.23%
• EPS Growth: 17.53%
• Country: US
• Employees: 13,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.32
• Shares Outstanding: 354,318,200
• 10 Day Avg. Volume: 391,487
• 30 Day Avg. Volume: 405,477
• PEG Ratio: -1.26
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 1.18
• P/FCF Ratio: -91.56
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 20.14
• 1Y Price Target: $18.82
• Price Target Upside: 4.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $18.50 ▲(2.83% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is most constrained by weak financial performance—multi-year net losses and negative free cash flow—despite solid revenue growth and a supportive balance sheet in the latest period. Offsetting this, the earnings call was strong with clear 2026 guidance for improved margins and EBITDA growth, and the technical setup is constructive with the stock trending above key moving averages. Valuation is held back by negative earnings and no stated dividend support.

Positive Factors

Diversified, recurring revenue model

Bausch + Lomb’s multi‑stream model (contact lenses, OTC consumer, prescription pharma, surgical consumables) creates recurring demand and reduces reliance on any single franchise. Durable replacement cycles and retailer/professional channels support predictable revenue and resilience through cycles.

Breakout pharma franchise (Miebo) and prescription momentum

Rapid prescription growth for Miebo and a raised peak sales target signal a durable high‑margin pharmaceutical franchise forming inside the business. Prescription adoption and payer uptake create stickier, higher‑value revenue that supports sustained margin expansion and long‑term top‑line diversification.

Clear 2026 guidance with margin and EBITDA improvement

Management’s 2026 targets imply meaningful operating leverage: mid‑teens EBITDA growth and a near‑19% margin at scale. Combined with gross‑margin targets (~62%) and Vision 27 cost programs, this guidance indicates structural improvements in profitability rather than one‑off gains, supporting sustainable earnings power.

Negative Factors

Multi‑year net losses and weak reported profitability

Despite revenue growth, the company has produced persistent accounting losses and a negative net margin in 2025. Ongoing reported losses weaken returns on equity and constrain the ability to generate retained earnings, limiting long‑term shareholder capital formation and financial flexibility.

Negative free cash flow and low conversion

Repeated negative free cash flow and a very small adjusted FCF base reduce capacity to self‑fund growth, pay down debt, or return capital. Low and volatile conversion also raises execution risk for sustaining R&D and commercial investment without resorting to external financing in adverse scenarios.

High interest expense and debt servicing burden

Material annual interest costs meaningfully depress net income and free cash flow, making profitability sensitive to financing costs. Even with refinancing that extended maturities, sustained elevated interest expense limits margin recovery and reduces financial flexibility for strategic investments or unforeseen shocks.

Bausch + Lomb Corporation Business Overview & Revenue Model

Company Description

Bausch + Lomb Corporation operates as an eye health company worldwide. It operates through three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical. The Vision Care/Consumer Health Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products, over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions comprising eye allergies, conjunctivitis, and dry eye. The Ophthalmic Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of eye conditions, such as glaucoma, ocular hypertension, and retinal diseases; and contact lenses for therapeutic use. The Surgical segment provides tools and technologies for the treatment of cataracts, and vitreous and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices. The company was founded in 1853 and is headquartered in Vaughan, Canada.

How the Company Makes Money

Bausch + Lomb generates revenue through several key streams, including the sale of contact lenses and lens care products, surgical products, and pharmaceutical solutions for eye health. The contact lens segment, which includes daily disposable and specialty lenses, represents a significant portion of the company's income. Additionally, the surgical division, which provides equipment and consumables for cataract and refractive surgery, contributes to its earnings. The company also engages in partnerships with healthcare providers and distributors to expand its market reach and enhance its product offerings. Furthermore, Bausch + Lomb invests in research and development to innovate new products, which helps maintain its competitive edge and drive long-term revenue growth.

Bausch + Lomb Corporation Financial Statement Overview

Summary

Steady revenue growth through 2025 is offset by materially weaker profitability (multi-year net losses and sharply lower EBITDA margins vs 2020–2021) and negative free cash flow in 2023–2025. Balance sheet leverage appears low in 2025, but returns on equity are negative, keeping overall financial quality constrained.

Income Statement

Revenue has grown steadily from $3.4B (2020) to $5.08B (2025), including +2.1% in 2025, showing a resilient top-line trajectory. However, profitability has deteriorated: net income moved from a $182M profit (2021) to persistent losses (2022–2025), with the net margin falling to -7.1% in 2025. Operating profitability also weakened versus earlier years (EBITDA margin down to ~2.2% in 2025 from ~19–21% in 2020–2021), indicating margin pressure and limited earnings power despite revenue growth.

Balance Sheet

Leverage appears very low in 2025 (debt-to-equity ~0.01) and equity remains sizable at ~$6.45B versus ~$14.0B in assets, which supports balance-sheet stability. That said, the capital structure has been volatile (debt-to-equity rose to ~0.76 in 2024 vs near-zero in 2020–2021), and returns on equity have been negative for multiple years (about -5.6% in 2025), reflecting that shareholder capital is not currently producing profits.

Cash Flow

Operating cash flow is positive and improving recently ($283M in 2025 vs $232M in 2024), suggesting underlying cash generation despite accounting losses. The key weakness is consistent negative free cash flow in 2023–2025 (including -$66M in 2025) and a sharp decline in free cash flow growth in 2025, implying elevated investment needs and/or working-capital headwinds. Cash flow also showed volatility, including negative operating cash flow in 2023.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.10B	4.79B	4.15B	3.77B	3.77B
Gross Profit	3.00B	2.92B	2.50B	2.25B	2.30B
EBITDA	572.00M	601.00M	499.00M	598.00M	733.00M
Net Income	-360.00M	-317.00M	-260.00M	6.00M	182.00M
Balance Sheet
Total Assets	14.02B	13.47B	13.44B	11.14B	10.82B
Cash, Cash Equivalents and Short-Term Investments	383.00M	305.00M	334.00M	380.00M	174.00M
Total Debt	5.37B	4.94B	4.68B	2.55B	140.00M
Total Liabilities	7.50B	6.92B	6.52B	4.04B	1.42B
Stockholders Equity	6.45B	6.47B	6.85B	7.03B	9.33B
Cash Flow
Free Cash Flow	-66.00M	-59.00M	-198.00M	170.00M	680.00M
Operating Cash Flow	283.00M	232.00M	-17.00M	345.00M	873.00M
Investing Cash Flow	-455.00M	-412.00M	-2.11B	-215.00M	-214.00M
Financing Cash Flow	225.00M	178.00M	2.08B	81.00M	-712.00M

Bausch + Lomb Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLCO, the sentiment is Positive. The current price of 17.99 is above the 20-day moving average (MA) of 17.04, above the 50-day MA of 17.08, and above the 200-day MA of 14.86, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 86.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLCO.

Bausch + Lomb Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMSI	77 Outperform	$4.89B	42.19	8.30%	―	11.49%	-2.89%
COO	68 Neutral	$16.38B	44.59	4.59%	―	5.06%	-4.47%
RGEN	67 Neutral	$7.58B	5,240.08	0.08%	―	11.74%	―
STVN	63 Neutral	$4.21B	28.19	9.81%	0.29%	9.19%	23.06%
BLCO	60 Neutral	$6.53B	-18.10	-4.69%	―	6.23%	17.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XRAY	51 Neutral	$2.62B	-2.97	-44.44%	5.61%	-7.08%	-113.81%

Bausch + Lomb Corporation Corporate Events

Bausch + Lomb refinances term loans, extends maturities

On January 2, 2026, Bausch + Lomb Corporation closed a refinancing of its existing credit facilities by entering into a fourth amendment to its credit agreement, establishing a new $2.80 billion tranche of term B loans maturing on January 15, 2031. The proceeds were used to refinance all of the company’s outstanding term B loans due 2031 and 2028, effectively extending the maturity of the 2028 loans to 2031 while lowering borrowing costs by reducing the applicable margins by 0.50 percentage points and 0.25 percentage points, respectively; the new loans amortize at 1.00% per year starting June 30, 2026, signaling an effort to optimize Bausch + Lomb’s capital structure and potentially improve its interest expense profile over time.

The most recent analyst rating on (BLCO) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Bausch + Lomb Corporation stock, see the BLCO Stock Forecast page.

Bausch + Lomb Adds New Directors to Board

On December 17, 2025, Bausch + Lomb Corporation announced the appointment of Eduardo C. Alfonso, MD, and Steven H. Collis to its board of directors, effective January 1, 2026. These appointments follow board changes announced in August 2025 and bring renowned expertise to the company, with Dr. Alfonso’s leadership in ophthalmology and Mr. Collis’s significant contributions to the pharmaceutical sector. The additions aim to strengthen Bausch + Lomb’s strategic direction and operations as it pursues growth opportunities across the eye health industry.

The most recent analyst rating on (BLCO) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Bausch + Lomb Corporation stock, see the BLCO Stock Forecast page.